Harmonization of Accounting Practices: The Case of Accounting for PPE in Lithuanian Non-Listed Companies
Renata Legenzova, Asta Gaigalienė, Inesa Vilkaitė
Available Online December 2016.
- https://doi.org/10.2991/icaat-16.2016.29How to use a DOI?
- Accounting harmonization, accounting policy, property plant and equipment (PPE), non-listed companies
- Accounting harmonization is aimed enhance accounting and information disclosure comparability across and within the countries and by decreasing de jure and de facto variations of such practices and disclosures. Non-listed companies comprising more than 90% of all the companies in Lithuania and the EU receive very little attention in accounting harmonization related research - such research primarily address issues related to IFRS adoption in listed companies. This paper is aimed to gather the evidence on the accounting practices of Lithuanian non-listed companies in the area of accounting for PPE and to assess the level of their harmonization. To collect information a survey method has been employed and representative sample of Lithuanian non-listed companies' population had been surveyed. Results of the survey reveal that 89.46% of non-listed companies use cost method to measure PPE after initial recognition; 44.5% - set a minimum recognition value from 500 to 1000 EUR; 88.5% - use the straight-line depreciation method; and 68.2% set a residual value of 1 EUR. In general, the level of harmonization of accounting practices in Lithuanian non-listed companies is above average. Comparability of accounting information across non-listed companies from within-country perspective is not accomplished.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Renata Legenzova AU - Asta Gaigalienė AU - Inesa Vilkaitė PY - 2016/12 DA - 2016/12 TI - Harmonization of Accounting Practices: The Case of Accounting for PPE in Lithuanian Non-Listed Companies PB - Atlantis Press SP - 285 EP - 296 SN - 2352-5428 UR - https://doi.org/10.2991/icaat-16.2016.29 DO - https://doi.org/10.2991/icaat-16.2016.29 ID - Legenzova2016/12 ER -